Investors looking for build wealth over time, while reducing the risks of investing in the stock market, should consider dividend stocks. In particular, investors should focus on stocks that not only pay dividends, but also raise their dividends each year. This is the sign of a profitable business model, with sustainable competitive advantages, and powerful brands. According to Standard & Poor’s, dividends have accounted for one-third of stock market returns since 1926. For investors interested in dividend growth stocks, there is no better place to look than the Dividend Aristocrats. The Dividend Aristocrats list Excel sheet has 51 h...
At the Fed, the debate is over normalization of the balance sheet. The Fed has already finished tapering. The ECB is still addicted to a balance sheet build-up. But i In contrast, the ECB is still addicted to a balance sheet build-up. But internal feuding has picked up with Germany and the hawks on one side and doves on the other. Bloomberg reports ECB Officials Disagree on How Much Is Too Much for Stimulus Plan. “Underlying inflationary pressure remains subdued” and “we still need a long period of accommodative policy,” Executive Board member Peter Praet, the ECB’s chief economist, told Belgian newspaper De Standaard in an intervi...
The idea of losing lots of money in a short period of time is probably one of the biggest fears of any investor. In fact, many of them would rather wait on the sideline than suffer this “inevitable-next-market-crash”. After all, nobody wants to suffer this type of drop: When a market crashes everybody panics. Should they? Not if they have done their homework first. It is impossible to know when the market will hit a new correction and your portfolio will lose 10% within a few weeks. We all know it is going to happen and we all know the market will recover afterward. Therefore, the only thing you should do is revise your portfolio each ye...
The 1934 film “Death Takes a Holiday,” explores why people fear it so much. While “Death” takes on a human form so he can unidentifiably comingle, he falls in love with a human. In the end, he must either sate his love and let her die or sacrifice his happiness and let her live. Last week, a similar drama played out in the Transportation Sector. After struggling since March to get over the resistance at 170, last week, on a quiet ½ day ahead of the July 4th holiday, IYT gapped higher. That gap caught my attention since the sector looked like death back in May. The resurrection above key resistance on the monthly chart, made me well,...
The North American Marijuana Index, a stock index that tracks the top performing cannabis stocks in the U.S. and Canada, decreased 3% in June as continued losses in Canada closed out the Index’s second worst performing quarter since its inception in January 2015. The North American Marijuana Index is a combination of the U.S. Marijuana Index and the Canadian Marijuana Index. U.S. Marijuana Index After consecutive months of double digit losses in April and May, the U.S. Marijuana Index remained flat in June. The broader U.S. market saw positive gains with the Dow Jones Industrial Average ending the month up 1.6% and the Russell 2000 incre...
AT40 = 54.6% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 56.5% of stocks are trading above their respective 200DMAsVIX = 11.2 (10.8% drop) (volatility index)Short-term Trading Call: neutral Commentary It is not easy catching a yo-yo…Source: Giphy There are all sorts of nicknames possible for a churning market. In this edition of “Above the 40,” I use a yo-yo to describe the market’s tantalizing lurches up and down. These moves within shouting distance of all-time highs must be frustrating bears and bulls alike who want to stick by a trade for more than a hot minute. (For example, the market ga...
The 50-day average of new 52-week highs is pointed lower, so I would expect the broader market to struggle a bit until the 50-day starts to point higher again. However, I wouldn’t get too concern about the longer-term health of the market unless this 50-day average trends decisively lower as it did in 2015. This chart shows the ECRI index has been declining all year long, and is now approaching an important level. If the ECRI holds above 2% or so, then I think the economy provides just enough growth to support stock prices. But below 2%, and the economy (and oil prices) come under pressure to move lower. The Dow Diffusion is more a medi...
Diversification is one of the key building blocks of a successful investment strategy. There are many types of diversification to help you minimize your investment risk. These include: Asset class diversification (equities, fixed income, real estate, commodities) Geographic diversification (domestic equities, international equities, emerging market equities) Company-specific diversification (Exxon Mobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS-A, RDS-B) The topic of this article is sector diversification. More specifically, this article will compare the performance of the different sectors of the S&P 500 over the past decade. ...
The week was short, but wild. We saw tech get hit hard, then rebound, bios and pharma looked great but failed and metals got hammered. We should get some more clarity next week as traders return from a nice week off. SPY bounced well off the 50 day average and closed above the 21 day average which is very positive action. Accordingly, we should continue nicely higher right away, if we move back under the 242 area then chances are we move lower, below 240 to 238. The Nasdaq still has a head and shoulders pattern but that may be cancelled out shortly if we get another strong day, so let’s wait and see. Enjoy your weekend....
“Rejoice in the Lord, always. I will say it again: rejoice! Let your gentleness be evident to all. The Lord is near. Do not be anxious about anything, but in every situation, by prayer and petition, with thanksgiving, give your concerns to God. And the peace of the Lord, which surpasses all understanding, will guard your hearts and your minds. in Christ Jesus.” Phil 4:4-7 I do believe that the queen and I are in the endgame now. She requires constant watching and care, and I rarely leave her side. I have been dealing with the short term emergencies and gathering the facts and resources together for next steps, as the situation c...